Agency spreads widen; FDIC extends TLG debt guarantee program

By Lisa Kerner

Charlotte, N.C., March 17 - Agency spreads were wider overall on Tuesday by about 2 to 5 basis points, depending on where you looked on the curve, according to one trader.

Callables were out 3 to 4 bps, the trader said, and the two- and three-year sectors were both out by 2 bps. Bullets were out 2 to 5 bps.

The trader wasn't hearing much on what she called "an unremarkable day."

Also on Tuesday, the FDIC voted to extend the debt guarantee portion of the Temporary Liquidity Guarantee Program through Oct. 31, from June 30. An FDIC spokesperson said the extension will reduce possible market disruption when the TLG Program ends.

The announcement didn't seem to have an impact on closing levels, said a source.

Agency desks have brought to market the deals from issuers taking advantage of the TLG Program.

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